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HTC likely paying Apple between $6 and $8 per phone sold


Over the weekend, HTC announced that it has licensed several Apple patents for 10 years, and will pay the company an undisclosed amount per phone sold to use several features in its Android devices. The agreement came after a several year patent battle between the two companies, in which Apple accused HTC of patent infringement and even managed to delay the release of its One series devices in the U.S. through an import ban. While the statement also referred to “cross-licensing” of a select number of HTC patents, likely pertaining to LTE technologies, Apple is expected to be the ultimate winner in this deal.

With the licensing settlement announced, it could set the bar for other Android OEMs, many of whom do not have the deep pockets of Samsung. So just how high is that bar? HTC is likely paying Apple between $6 and $8 per phone sold, which could account for nearly $200 million in revenue for Cupertino if HTC’s projection of 30 million devices sold next year is accurate. The Taiwanese company is already paying Microsoft some $5 per handset sold, but HTC says neither deal will have a material impact on its finances. HTC’s revenue for 2012 is expected to be roughly $10 billion CDN, though its last few quarters have seen a precipitous drop in net profit.

Whether other companies will follow suit remains to be seen, but this is unlikely to be the last time we hear about Apple’s renewed, albeit less frantic, war on Android.

Source: WSJ
Via: Mashable

  • iphoneee

    Good! This will offset the pay of developers of Apple Maps

    • JUST SAYING

      APPLE MAKING GOOD BUSINESS BUY SUING OTHERS BESIDE A CRAPPY IPHONE

    • tech

      Nope apple map will continue sucking.

    • Tom

      For a good, short analysis of this deal read “With HTC Patent Deal, Apple Is Going For Android’s Jugular” on TechCrunch.

      Google is the upstart that threatens to cut margins. MS and Apple want to return to the duopoly of old.

  • alex

    Is RIM DEAD yet??

    • sp

      obviously you cant read

  • Joshua Bouffard

    Murder everyone at apple.

    • Joe Shutt

      Well, that escalated quickly…

  • nely

    Apple being Appele again… but on the real though, How deep are these companies pockets?? they talk about hundreads of millions like its nothing.

  • sp

    the rest of the electronic/phone world just died a little here…

  • DrBadass

    Apple are big bullies to the phone world.

  • Campbell Soup FTW5555

    Thanks for this article. I will not buy another HTC device again. Good bye HTC and hello Google or Samsung :)

    • Joe Shutt

      I doubt you were buying HTC devices at all so this is meaningless.

  • TZM

    Yep, I won’t buy an HTC ever since they did the deal with the devil.

    • Joe Shutt

      Really? When were you going to buy a HTC device before this? Oh that’s right. It was never going to happen. So the rhetoric is unnecessary.

    • WirelessBoy

      @TZM Awesome! Can I have your iPod now?

  • Tom

    During the Samsung trial, it was reported that Apple’s final offer to Samsung was $40 per tablet.

    Samsung is Apple’s main target now.

    HTC got great rates on the licenses from Apple & MS because they were in bad enough shape that they weren’t a threat and could be coopted.

  • Jowe

    I am glad to report that I have had exactly ZERO Apple products in my household, and this shall remain so forever.

    The greed is simply overwhelming. I refuse to support that.

    • Joe

      if you were in apple’s shoes, you’d do the exact same thing.

    • WirelessBoy

      @Jowe I guess you also don’t own any Samsung products either? They increased the cost of mobile chips to Apple by 20%, gouging you say? I agree…

  • Jeff

    If you really think about it HTC doesn’t bring much to Android anymore in terms of phones. They could of developed an edge in one or two crucial way over Samsung (like battery life or camera quality) but decided to go with jack of all trade phones that under perform Samsung phones in pretty much every way. They also didn’t support microsd cards on their flag ship phones. Samsung did and they are selling 10 of millions of GS3 – just saying.

  • 45

    Smart business by HTC. Rather than getting involved in another huge lawsuit, they’ll just ‘rent out’ (for lack of a better term) the patents. Makes sense.

  • Apple Sales Guy

    HTC barely sells any phones, so the money we get from them will be minuscule.

    Tim Cook finds more money under his couch :\

    Cheers
    ;)

    • Ron Mexico

      Ya? And you’re ugly

  • Tomatoes

    Just lost a lot of respect for HTC. I was considering the HTC 8x but now I am not so sure. This isn’t about the 6-8 dollars per handset but about the principle.

    Apple is asking them for money for prior art or things that they never invented. Why the hell would HTC agree to this for 10 years?

    This is like a kid agreeing to give a bully half of their lunch for the rest of their elementary school lives instead of standing up to them like they should. Disgusting HTC.

    • boojay

      That’s like telling the helpless little kid to fight the gargantuan bully only to get his butt whooped.

  • Tomatoes

    I really want the HTC 8x but not sure if I can give Apple even $6 of my money.

    I wonder if this applies to Windows Phones or is that just protected by the Microsoft agreement?

  • boojay

    Disappointed in HTC, but they still make the best phones on the market by a longshot.

  • superfly

    All apple buyers are mentally retarded. And their products are satan indwelling.

    • Andrew

      Simply using the R-word invalidates your argument. Be respectful of those around you and realize that your words are hurtful.

    • Joe Shutt

      Satan? That’s funny. I guess it’s iPhones for the rich and Androids for the poor?

  • Jon

    Cross license agrrements aren’t new. Apple has to pay Nokia $8 per iPhone for example. How much is Apple paying HTC per phone for its patents?

    • Tomatoes

      I am guessing the rumour is that after cross licensing, HTC is on the short end for 6-8 dollars.

      The Apple offer to Samsung was $30 per phone and $40 per tablet, but that was after subtracting the discounts for licensing. That is how greedy Apple is.

  • dv

    Apple is completely full of sh*t, last I remember HTC was making touch screen phones way before Apple, this is what turns me off from Apple, I will never buy an other product from them!

    • Joe Shutt

      What device did you buy from them originally? Or is this just pandering to the masses?

  • lyndon420

    All the companies who signed on to the open handset alliance need to band together as one with all their patents.

  • patricm h m

    Just robbery Apple and HTC are two different phones nothing in common who is next Apple Motorola Nekia who his main goal is to destro his main goal is to destroy Android

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